Rcm
Vatsal (Student) (453 Points)
17 August 2016
Whether service reciever can take the cenvat credit of his liability?
3 Replies
Vineeth PN
(Account Assistant)
(687 Points)
Replied 17 August 2016
Input services you can take credit. for egg. if you are a manufacturer you hav to pay rcm for manpower 100% that you can take credit on next month.
Sunil Kumar
(Indirect Taxation )
(1246 Points)
Replied 19 August 2016
Dear Vatsal,
I want to draw your attention on Proviso to Rule- 4(7) which says and I quote,
Provided that in respect of input service where whole or part of the service tax is liable to be paid by the recipient of service, credit of service tax payable by the service recipient shall be allowed after such service tax is paid.
Therefore, the credit can be taken on payment basis.
Hope, above information serves your purpose.
I want to draw your attention on Proviso to Rule- 4(7) which says and I quote,
Provided that in respect of input service where whole or part of the service tax is liable to be paid by the recipient of service, credit of service tax payable by the service recipient shall be allowed after such service tax is paid.
Therefore, the credit can be taken on payment basis.
Hope, above information serves your purpose.
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